IBM Corp’s gross profit margin on computer hardware continued to decline in the third quarter, the company’s 10Q filing with the Securities & Exchange Commission discloses; according to the Wall Street Journal, the company also reported that its spending on research and development in the third quarter fell 20% from the year ago level; gross margin on hardware slumped to 30.2% in the third quarter, down from 30.6% in the second quarter and 40.5% a year earlier; on software, the third-quarter gross margin was 61.3%, down from 62.0% in the second quarter and 68.1% a year ago; on maintenance it was 53.2%, down from 53.6% in the second quarter and 55.2% a year ago; on services it was 13.2%, down from 15.1% in the second quarter and 16.8% a year ago; and on rentals and financing, it was 59.4%, down from 59.8% in the second quarter but above the year-ago level of 58.7%; cash rose to $1,570m at September 30 from $1,150m at June 30, cash equivalents fell to $3,760m from $4,880m and mrketable securities rose to $840m from $737m; short-term debt was $16,150m at the end of the third quarter, down from $17,150m, but long-term debt rose to $15,390mm from $14,560m; on the brighter side, selling, general and administrative expenses shrunk 8.9% in the third quarter to $4,260m.
IBM GROSS PROFITS DOWN AGAIN
